Which One of the Following Is a High Value-Added Activity

question 48

Multiple Choice

Which one of the following is a high value-added activity?

• A)Set-up.
• B)Rework.
• C)Repair.
• D)Storage.
• E)Processing.

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Definitions:

Excess Capacity

A situation where a company can produce more goods than the market demands, often leading to inefficiencies.

Monopolistic Competition

A market structure featuring many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Chronic Excess Capacity

A persistent situation in which industries or firms have more production capacity available than is being used, often leading to economic inefficiencies and reduced profit margins.

Minimum-Cost Output

The quantity of output at which the average total cost is lowest—the bottom of the U-shaped average total cost curve.